Scotts Sporting Stores Inc. reported the following cost and net realizable value for inventory at Dec 31:

Item Units Unit cost Unit NVR

Skates

Bauer 14 $262 $404

CCM 11 $433 $374

Running shoes

Adidas 5 $118 $118

Puma 8 $117 $111

A) Calculate the ending inventory balance for skates and running shoes using the lower cost and net realizable value for each item.

B) Calculate the ending inventory balance for skates and running shoes using the historical unit costs provided.

C) Compare the difference in the ending inventory amounts. Which amount provides a more faithful representation of the inventory value?